SolGold disappointed by Cornerstone’s quick snub
Australian company SolGold on Friday expressed its frustration at the rejection of its planned bid for Canadian firm Cornerstone – a company that holds 15% of the Cascabel copper/gold project in Ecuador.
Cornerstone rejected the intended offer meant to consolidate SolGold’s ownership in Cascabel in record time. It took Cornerstone less than three hours to dismiss SolGold’s intentions in a press release lodged with the TSX at 09:52 EST.
“Was there time that early in the morning to actually make contact with the shareholders representing more than 50% of those outstanding? Did Cornerstone have time to hold a board meeting to consider the offer between the time board members woke up in the morning and the time the press release was issued?,” LSE- and TSX-listed SolGold questioned on Friday.
The all-stock transaction of 0.55 a share for every Cornerstone share is a 20% premium to the takeover target’s share price. When it first announced the proposed transaction on January 31, SolGold said that it had felt, for some time, that the consolidation of ownership of the Cascabel project into a single listed entity made “eminent sense” to simplify the structure and to remove the risk of dilution for Cornerstone shareholders.
SolGold said that it had approached Cornerstone in 2017 and in 2018, but that the Canadian company had indicated that it would only engage in negotiations if 50% of the seats on the board of directors of the combined entity were allocated to Cornerstone and if CEO Nick Mather and chairperson Brian Moller were replaced.
The company stated that it intended to proceed with its offer.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation